Use of methods of managerial decision-making for risk and uncertainty

This diploma thesis uses methods of managerial decision-making under risks and uncertainty while solving a specific decision making problem. In this case we talk about relocation of a branch of a well-established travel agency in Jindřichův Hradec from unattractive location on Panská Street to the busier Masaryk Square. A compiled decision matrix represents the starting point for the application of individual rules in the case of discrete values of risk factors. These rules include, in the case of decision-making under risk, the rule of expected value, the rule of expected value and variance and the value of perfect information. In the case of decision making under uncertainty, there are used the rules of Minimax, Maximax, Laplace, Hurwicz and Savage. While working with continuous values of risk factors, the Monte Carlo method is used. Since this is an ex post analysis, the aim of this thesis is to find out whether the relocation of the branch was the right decision, or to explain why the decision was not the right one and to suggest a better variant.